Why Are Frank Trotter and Rick Rule Building Battle Bank?

TL;DR

Frank Trotter and Rick Rule are building Battle Bank to offer a different value proposition from large traditional banks through higher interest rates, fewer fees, better service, and online banking. Trotter says the project depends on four fundamentals: people, technology, capital, and a plan, while proposed products include precious-metals trading and foreign-currency deposits. Read on for details about its funding, team, technology, and planned accounts.

Transcript

i'm charlotte macleod with the investing news network and here today with me is frank trotter president of battle financial thank you so much for being here today with me great to see you it's fantastic thank you great so we're here at the rural symposium and you're you're talking about battle bank i wondered if we could start off with a quick over... Read More

Key Insights

• ☠️ Battle Bank aims to challenge traditional banks with its higher interest rates and better customer service.
• 😶‍🌫️ Technology has revolutionized the banking industry, making online transactions and cloud-based security systems more prevalent.
• 🤘 Battle Bank's unique products, such as precious metals trading and foreign currency deposits, offer diversification opportunities to customers.
• 🦺 By avoiding derivatives trading and maintaining FDIC insurance, Battle Bank offers a safer alternative to customers.
• 😘 The timing of Battle Bank's launch, amidst economic turmoil and low interest rates, makes it an attractive option for individuals seeking to preserve their purchasing power.
• 📬 Battle Bank is in the process of raising capital through private placements and will soon open the offering to a broader audience.
• ❓ Frank Trotter's experience in the banking industry, combined with the feedback from potential customers through the waitlist, contributes to the success of Battle Bank.

Questions & Answers

Q: Why are Frank Trotter and Rick Rule building Battle Bank?

They saw an opportunity to return to banking with a model designed to improve on large banks’ low interest rates, substantial fees, and poor customer service. Battle Bank is intended to offer customers a distinctly different value proposition.

Q: What is Battle Bank?

Battle Bank is a new bank being built by Frank Trotter and his team after discussions with Rick Rule. It draws on Trotter’s experience with Mark Twain Bank in the 1980s and EverBank through the 2000s.

Q: How will Battle Bank differ from traditional banks?

Battle Bank plans to compete through higher interest rates, fewer fees, and better customer service. Trotter said that if it had launched at the time of the interview, its checking rate likely would have been around 1.2%, compared with 0.02% at Bank of America, 0.01% at Chase, and 0.15% at Schwab.

Q: What products does Battle Bank plan to offer?

Its planned products include high-value checking and savings accounts, precious-metals trading, foreign-currency deposits, and market-index CDs. The existing page summary also says it intends to offer loans secured by precious metals to provide customers with liquidity.

Q: What does it take to build Battle Bank?

Trotter identifies people, technology, capital, and a plan as the core requirements. The bank needs systems for serving clients, tracking transactions, and maintaining security, along with an experienced team and sufficient funding.

Q: Who is on the team building Battle Bank?

Trotter says Battle Bank has brought back many experienced colleagues from EverBank and Solera National Bank in Colorado. He considers assembling strong people one of the central parts of building the bank.

Q: How is Battle Bank raising capital?

Battle Bank completed one private-placement round with highly accredited investors and had another round in progress. It also announced an offering for a broader audience, though participants still needed to be accredited and follow the process under the website’s “Invest in Us” tab.

Q: How has technology changed online banking since EverBank launched?

EverBank launched eight years before the iPhone, when broad comfort with online technology was much lower. Trotter says banking systems are now largely cloud-based, improving security and customer experience, while online shopping and the pandemic have made people more comfortable conducting financial transactions online.

Summary & Key Takeaways

• Battle Bank is a new banking venture being built by Frank Trotter, leveraging his experience in the industry.

• The bank plans to differentiate itself from traditional banks by offering higher interest rates, avoiding fees, and providing better customer service.

• Battle Bank's products will include high-value checking and savings accounts, precious metals trading, foreign currency deposits, and market index CDs.